Bloom Energy Joined the S&P 500 at Nearly 400 Times Earnings. History Says This Is What Happens Next.

Bloom Energy joined the S&P 500 on Sept. 21 with an extremely high valuation of nearly 400 times trailing earnings, which has since dropped to 120 times earnings as the stock declined 29%. Historical data shows that S&P 500 additions and high P/E ratio stocks typically underperform the market, though Bloom Energy's strong revenue growth (138% YoY) and positive earnings present a contrasting factor.